EUR/USD: On the defensive - Commerzbank

According to Karen Jones, analyst at Commerzbank, EUR/USD remains on the defensive, having failed to make any impact on the 55 and 100 day moving averages at 1.1291/1.1342.

Key Quotes

“Attention is on the 1.1176 recent low. Intraday Elliott wave counts are negative and the DMI is also negative. Below 1.1185/75 (61.8% retracement) lies the 1.1110, the May 2017 low and the 1.0814/78.6% retracement.”

“We suspect that the market is trying to base but needs to do more work (we note the 13 count on the weekly chart and this adds weight to the idea of a potential base). Initial resistance is the 100 day ma at 1.1342 and the resistance line at 1.1376 ahead of the 200 day ma at 1.1433.”